USD/TRY plummets to 5.55 after S&P says Turkey's rating not at risk of downgrade

In a report published on Thursday, the S&P Global said that Turkey's credit rating was not currently at risk of a downgrade but warned another fall in the TRY could be "very bad news." With the initial reaction, the TRY gathered strength sending the USD/TRY to a daily low of 5.55. As of writing, the pair was trading at 5.57, losing nearly 500 pips, or 0.9% on a daily basis.

“Further lira for the weakness going forward would be very, very bad news for corporates and therefore the banks,” Frank Gill, S&P’s top EMEA sovereign analyst, said.

Source: Reuters.